International Arbitration Dictionary

The international arbitration dictionary provided below defines many of the most commonly-used terms and expressions in international arbitration disputes.

As in any specialized field, specific legal terms are frequently encountered in international arbitration, along with often unnecessary jargon. These terms include legal terms, standard expressions, major international conventions, rules, standard types of contracts, as well as common acronyms. Our international arbitration dictionary attempts to demystify these terms.

The most common expressions encountered have been included in the international arbitration dictionary below, in alphabetical order. Please also visit the arbitral institutions section of this website, which provides acronyms for dozens of arbitration institutions.

AAA – American Arbitration Association.

Ad hoc arbitration – Arbitration proceedings which are not administered by an arbitration institution, such as the ICC or the LCIA.

Alternative dispute resolution – Commonly referred to as ADR; methods by which legal disputes are resolved by the parties privately, rather than through litigation in public courts, typically through mediation, conciliation or arbitration.

Amiable compositeur – Term for an arbitral tribunal expressly authorized by the parties to base its decision on equitable principles such as fairness, and not solely on the basis of the law.

Amicable settlement – Settlement of a dispute by the parties amicably, ending the dispute. An attempt to amicably settle a dispute is frequently required before a dispute may be submitted to arbitration.

Annulment of an award – Also known as setting-aside; decision by a national court to vacate an award, which is only possible in exceptional circumstances.

Answer – Name for respondent’s reply to the claimant’s arbitration request in certain arbitral proceedings and /or notice of dispute.

Anti-arbitration injunction – Order made by a national court requiring a party to halt arbitration proceedings.

Anti-suit injunction – Order made by arbitral tribunals or national courts requiring a party to stop litigation proceedings initiated before a state court.

Appointing authority – Authority chosen by the parties, or by an arbitral institution, to appoint arbitrators, such as the PCA.

Arbitrability – The issue of whether parties are legally entitled to have their dispute decided by an arbitral tribunal as opposed to a national court.

Arbitral institution – Institution providing administrative services for arbitration disputes, such as the LCIA, the ICC or the PCA. The institution does not reach a decision on merits of the dispute, unlike arbitral tribunals.

Arbitral tribunal – Panel of individuals appointed to decide on a dispute. Arbitral tribunals have the power to issue binding awards that may be enforced like a domestic court judgment.

Arbitration – Alternative dispute resolution method where parties submit their dispute to one or several private individuals.
Arbitration clause – Provision which states that the parties agree to submit their dispute to arbitration. Most arbitral institutions provide model arbitration clauses.

Arbitrator – Private person appointed to decide a dispute, as opposed to a national judge, typically for his or her competence and expertise.

As-built – As-built documents are prepared by contractors during a project. They show the discrepancies between the planned schedule and the actual schedule as well as modifications.

As-built vs as-planned – Damage analysis which compares the as-built schedule and the as-planned schedule, typically in construction arbitrations.

As-planned – Contractually/originally agreed.
Award – Decision made by an arbitral tribunal which is final and binding on the parties.

Bifurcation – Division of the arbitral proceedings into two phases, each dealing with a different issue, such as jurisdiction and liability, or liability and quantum.

Bilateral Investment Treaty – Term given to a treaty between two States granting protections for investments, such as fair and equitable treatment, the right to prompt and adequate relief in the case of expropriation, and the States’ consent to resolve disputes with investors through binding arbitration, often before the ICSID.

Bill of Quantities – Document which describes and quantifies each item necessary for a construction project.
BIT – Bilateral Investment Treaty.

Build-only – Construction contract in which the contractor only has to execute the works, which are designed by the employer.

Calvo doctrine – In international law, rule according to which the relevant courts for investment disputes are those of the State where the investment takes place. This principle is endorsed by the constitutions of several Latin American countries.

Chairman – Also known as President; arbitrator who is usually appointed by two party-appointed arbitrators or by an appointing authority.

Challenge of arbitrator – Request to remove an arbitrator.
Challenge of award – Application made to a national court to review an award. Grounds for the challenge of awards are strictly limited by national arbitration laws.

Chess-clock arbitration – Arbitral proceedings where parties are allocated exactly the same amount of time to present their cases. Time equality is ensured with chess clocks, hence the name.

CIETAC – China International and Economic Tribunal Arbitration Commission.

Claimant – Party initiating the arbitration.

Co-arbitrator – Arbitrator who is not the chairman and is appointed by a party.

Conciliation – A form of alternate dispute resolution where a neutral Conciliator (third-party) is appointed to hear both sides of a dispute and then draft a non-binding document suggesting how to resolve the dispute. Conciliation is similar to mediation, but more structured.

Confirmation of arbitrator – In the International Court of Commerce (ICC) system, decision to accept an arbitrator chosen by one or both parties.

Consent award – Decision incorporating the amicable settlement reached by the parties.

Conservatory measures – Orders of a temporary nature, made against one party by an authority before a final decision is rendered, such as attaching assets that risk being depleted.

Consolidation – The joining of several arbitration proceedings into one arbitration, potentially on the basis of separate contracts, for reasons such as efficiency.

Cost Plus contract – Construction contract where the contractor is paid the actual price of the works and materials plus a fee.

Costs of arbitration – The total amount payable for the conduct of the arbitration (including arbitral institutions’ fees and expenses, arbitrators’ fees and expenses, legal costs).

Costs submission – Memorial, typically filed by each party after all other steps in the arbitration have been completed, relating to the costs of the arbitration that they have spent and wish to recover.

Counterclaim – A claim brought by a party that was initially a defendant in an international arbitration.

Critical path – Series of stages in a construction project which must be completed on time if the project is to be completed on the date agreed by the parties.

Damages – Amount of money owed by one party to compensate for the harm it has caused the other party.

Default award – Decision of the arbitral tribunal when one party does not take part in the proceedings.

Disclosure/ Discovery – Common law legal concept according to which each party must produce the documents relevant to the dispute. It is typically more limited in international arbitration than in common law jurisdictions.

Discounted Cash Flow – Formula used to determine the value of a project, based on the time value of money.

ECT – Energy Charter Treaty.

Emergency arbitrator – Individual appointed according to certain arbitral institutions’ rules to decide on urgent orders before the constitution of an arbitral tribunal.

Emergency measures – Orders made by an emergency arbitrator, before the constitution of an arbitral tribunal.

Escalation clause – Contractual term according to which parties should endeavor to amicably settle the dispute before putting forward any request for arbitration.

Estimated cost method – Formula to calculate damages which takes into account the costs as forecasted.

Evidentiary hearing – Hearing where both parties’ witnesses submit their oral evidence to the tribunal.

Ex aequo et bono – Decision-making based on equitable principles such as fairness and not purely on strict legal principles.

Exequatur – Latin term meaning “to execute/abide”. Order issued by certain state courts, such as French national courts, that a party must obey an arbitral award.

Expropriation – The act of taking privately owned property by a government; frequently at issue in investor-State disputes.

Fair and equitable treatment – In international investment disputes, standard of protection commonly required of host countries to their foreign investors.

FIDIC – Fédération des Ingénieurs Conseils / International Federation of Consulting Engineers, a society of engineers involved in the drafting of standard forms of international construction contracts.

FIDIC – Orange Book – Conditions of Contract for Design-Build and Turnkey.

FIDIC – Red Book – Conditions of Contract for Works of Civil Engineering Construction.

FIDIC – Silver Book – Conditions of Contract for EPC (Engineering Procurement Construction) Turnkey Projects.

FIDIC – Yellow Book – Conditions of Contract for Electrical and Mechanical Works including Erection on Site.
Final award – The last decision made by an arbitral tribunal on all the elements of the dispute. This may be preceded by one or multiple partial awards, for instance an award on jurisdiction.

Forum – Latin term for a tribunal or a court.

Guaranteed maximum price – Pricing method where the contractor cannot receive an amount higher than the sum agreed with the employer.

Hearing – Hearing of the parties and/or their witnesses by the arbitral tribunal.

HKIAC – Hong International Arbitration Court.

IBA Guidelines on Conflict of Interest – The International Bar Association (IBA) Guidelines on Conflicts of Interest in International Arbitration are non-compulsory rules often used by practitioners to prevent conflicts of interest.

IBA Rules of Evidence – The International Bar Association (IBA) Rules on the Taking of Evidence in International Arbitration are non-compulsory rules often used by practitioners to structure the taking of evidence, such as document production.

ICANN – International Corporation for Assigned Names and Number.

ICC – International Chamber of Commerce.

ICC Rules – The arbitration rules of the International Chamber of Commerce, the most recent of which is applicable to arbitrations instituted after January 1, 2012.

ICDR – International Centre for Dispute Resolution.

ICSID – International Centre for Settlement of Investment Disputes, the most frequent forum for resolving investor-State disputes.

Institutional arbitration – Arbitration proceedings administered by an arbitral institution such as the ICC.

Interim measures – Also known as conservatory measures. Orders of a temporary nature, made against a party by an authority before a final award or judgment.

Joinder – The addition of a party to an arbitration.

Jurisdiction – The legal right/entitlement of an authority to decide an issue. In arbitration, the arbitral tribunal’s jurisdiction depends entirely on the consent of the parties.

Jurisdictional objection – Statement by a party that an authority is not entitled to decide an issue.

Kompetenz-Kompetenz – Legal doctrine according to which an arbitral tribunal can decide whether it has jurisdiction over a dispute, which is enshrined in many national arbitration statutes.

LCIA – London Court of International Arbitration.

LCIA Rules – The arbitration rules of the London Court of International Arbitration.

Lex arbitri – Latin term referring to the arbitration law applicable to the conduct of the arbitration.

Lex fori – Latin term referring to the law applicable in the seat of the arbitration.

Lex mercatoria – Latin term referring to legal principles and customs established by commercial practice.

Liquidated damages – Amount of damages agreed in advance in a contract in case of breach.

Mediation – The most common type of alternative dispute resolution, mediation is a procedure whereby a mediator is appointed to facilitate the parties seeking to resolve their dispute by improving their ability to communicate, with the objective of negotiating a settlement agreement. Once the settlement agreement is signed, it becomes binding like any other contract.

MFN – Most Favoured Nation.

Model Law – Arbitration rules drafted by the UNCITRAL, which served as a basis for numerous national arbitration laws.

Most favoured nation clause – In bilateral investment contracts, contractual provision according to which countries must be treated equally by the host country. If a host country offers to a trading partner more advantageous conditions, such as lower tax on a certain type of products, then other trading countries may be able to rely on a most favoured nation clause to benefit from the same advantage.

Multi-contract arbitration – Arbitral dispute where claims originate from several contracts.

Multi-party arbitration – Arbitration with three or more parties, which is common in practice.

Multi-tiered dispute resolution clause – Contractual provision including additional stages that must be passed through by the parties before initiating arbitration, such as first endeavoring to amicably settle their dispute before resorting to international arbitration.

Net Book Value – Original cost of an item less any depreciation or amortization.

New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 – This important international convention renders enforcement of arbitral awards possible in 148 countries.

Partial award – Decision on one or several specific issues, rendered prior to the final award, for instance on jurisdiction.

Party-appointed arbitrator – Arbitrator selected by a party, typically a co-arbitrator.

Pathological arbitration clause – Poorly drafted arbitration clause which renders uncertain its validity and hence the possibility of recourse to arbitration.

PCA – Permanent Court of Arbitration.

Privilege – Legal principle according to which a party can refuse to produce evidence, such as documents.

Procedural measures – Measures of an arbitral tribunal concerning the conduct of arbitral proceedings.

Procedural order – Order made by the arbitral tribunal concerning the conduct of the proceedings.

Quantum – Amount of money payable by the losing party.

Quantum meruit – Latin expression meaning “the amount it deserves.” It is a method of assessing damages according to what appears reasonable in the circumstances.

Recognition of awards – Acknowledgement by a state court that an arbitral award is binding.

Redaction – Deletion of parts of documents under the legal principle of privilege.

Redfern Schedule – Standard schedule often used by parties and arbitral tribunals to manage document requests.

Remission – Return of an award to an arbitral tribunal by a national court for a new decision.

Reply – Claimant’s memorial in defence to a Respondent’s counterclaim.

Request for Arbitration – Also known as notice of arbitration. Written document sent by a claimant to an arbitral institution to start arbitration proceedings.

Respondent – Party against which arbitration proceedings are conducted by the claimant.

SCC – Stockholm Chamber of Commerce.

Scrutiny of awards – Service offered by certain arbitral institutions to review an award before it is approved to be sent to the parties.

Sealed offer – Offer made by one party to another to try and achieve an amicable settlement.

Separability – Legal principle according to which an arbitration clause is independent from the contract in which it appears. Thus, even if the contract is not valid, the arbitration clause will remain effective.

SIAC – Singapore International Arbitration Court.

Sole arbitrator – Arbitral tribunal composed of one member only.

Statement of Claim – First set of submissions filed by a claimant.

Statement of Defence – First set of submissions filed by a respondent, as a reply to a claimant’s statement of claim.

Statement of Rejoinder – Second set of submissions filed by a respondent, as a reply to a claimant’s statement of reply.

Statement of Reply – Second set of submissions filed by a claimant, as a reply to a respondent’s statement of defence.

Substantive law – The rules applicable to the merits of the dispute such as the relevant contract law or tort law.

Terms of Reference – Document detailing the missions of the arbitral tribunal as well as the parties’ backgrounds and positions, and a key feature of ICC arbitration.

Total Cost Method – Formula used to calculate damages. It takes into account all the costs incurred, whether or not they are due to the claimant’s actions.

Trifurcation – Division of the arbitral proceedings into three phases, each dealing with a different issue such as jurisdiction, liability or costs.

Truncated tribunal – Arbitral tribunal where originally-appointed members have either been removed, have resigned or have passed away.

Turnkey contract – Construction contract where the owner literally only has to “turn the key” when the project is completed, e.g., no additional work is required.

UNCITRAL – United Nations’ Commission on International Trade Law.

UNCITRAL Model Law on International Commercial Arbitration, 1985 – A model arbitration law drafted by the UNCITRAL, a division of the United Nations. It served as basis for numerous national arbitration laws. The Model Law was last amended in 2006.

WIPO – World Intellectual Property Organisation.

Witness statement – Written statement made by a witness, which may replace questioning at a hearing.